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From a legal standpoint, they are not separate. Revenue recognition recognize (book into accounting record) revenue when it is earned and realizable expense recognition. Explore key concepts to enhance your knowledge of. From an accounting viewpoint, it is a business entity separate from the affairs of the owner. Access the ultimate accounting basics cheat sheet in this article. Textbook summary of corporate financial accounting 10e, ch 1, by warren/reeve/duchac.
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